BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.
From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.
While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.
Without further ado, here's a look at today's stocks.
Nearest Resistance: $17.50
Nearest Support: $15
Catalyst: Money Laundering Probe
Petrobras (PBR) - Get Report is getting attention for all the wrong reasons this week, down 4% yesterday following news of a money laundering probe that's spreading from PBR to a number of different international banks. That comes following the announcement that Petrobras' refining division is already under a Brazilian congressional investigation for overspending. Despite its publicly-traded status, PBR is, after all, an arm of the Brazilian state.
For now, the negative press isn't affecting the technical picture in Petrobras. Shares have been in an uptrend since the beginning of April, and they're holding above support this morning. As long as PBR doesn't violate $15, it's a buy-the-dips stock.
Sirius XM Holdings
Nearest Resistance: $3.50
Nearest Support: $3.30
Catalyst: Technical Setup
Satellite radio operator Sirius XM Holdings (SIRI) - Get Report started off the week on big volume thanks to a technical setup in shares. Sirius XM has been forming a bullish ascending triangle setup for the last month and change, and yesterday's 2.5% pop provided a test of key resistance at $3.50.
For now, we're still waiting to see a confirmed breakout above that $3.50 high-water mark. When it happens, it makes sense to go long SIRI.
Nearest Resistance: $5
Nearest Support: $4.30
Catalyst: Share Offering
Real estate finance stock Newcastle Investment (NCT) took a 2.4% haircut on big volume in yesterday's session, down following news that the firm was planning a 40 million share secondary offering. Offering amounts to 11% of NCT's current outstanding share count, an indication of the amount of dilution that shareholders will take on the offering.
Technically speaking, NCT is in make-or-break mode right now. Shares are testing the bottom of their uptrending channel, a setup that's helped propel this name higher for the better part of the last year. If NCT falls through $4.30, then this uptrend is coming to an end.
Nearest Resistance: $27
Nearest Support: N/A
Catalyst: Q2 Earnings
Shares of aquatic theme park operator SeaWorld Entertainment (SEAS) - Get Report got utterly stomped in yesterday's trading, ending the session more than 34% lower on the heels of second-quarter earnings. SeaWorld reported earnings of 43 cents per share, falling short of the 58-cent profit that analysts were expecting. Already, that number was muted due to controversy over the firm's treatment of its killer whales, which received international attention after the release of the film Blackfish.
Simply put, you don't want to own this stock. SEAS cratered through support in yesterday's session, as buyers fled and shares failed to catch a bid until they reached the teens. Until SEAS can find some semblance of support again, it's best avoided.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
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At the time of publication, author had no positions in the names mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji